China Gas Holdings 0384

[winston]

Not vested.

China Gas to supply more cities
Mandy Lo
Friday, July 25, 2008

China Gas Holdings (0384) said it plans to invest 2 billion yuan (HK$2.28 billion) to expand its project portfolio to supply piped gas to 75 mainland cities from the current 68 cities in 16 provinces.

It also plans to boost gas volume to two billion cubic meters from 1.04 billion cubic meters and to double the number of compressed natural gas stations to 100.

"We may consider to finance by borrowing US dollars from banks as the currency is at a lower interest rate of 3 to 4 percentage points, while the cost of placing shares is comparatively high," said managing director Liu Ming-hui at a conference yesterday.

At the end of March, China Gas had cashflow of 1.67 billion yuan, Liu said.

China Gas owns 83 percent of the nation's largest LPG contributor Zhongyou Hua Dian Energy which has 11 LPG terminals that enable China Gas to tap the gas import business.

Net profit of China Gas slumped 40.4 percent to HK$119.77 million for the year ended March 31 from HK$200.78 million a year earlier. Turnover jumped 106.4 percent to HK$2.55 billion. Earnings per share were 3.73 HK cents, down 44.3 percent.

[winston]

China Gas unit takes stake in city project

Mainland piped gas operator China Gas (0384) said wholly owned subsidiary Zhongran Investment has agreed to acquire a 57 percent interest in Jiamusi Hengjia Gas, which holds registered capital of 50 million yuan (HK$57.1 million).

China Gas will have a total 69 city gas projects upon completion of the acquisition.

Jiamusi city is located downstream of the Songhua River in Heilongjiang province, where there are proven natural gas reserve of more than 10 billion cubic meters.

China Gas said the reserves can support the city's natural gas consumption for a decade.

[winston]

Not vested. From UOBKH:-

Valuation/Recommendation

The stock is currently trading at 18x forward PE, which, we believe, has largely factored in the good financial results. Maintain HOLD and with an entry price of HK$2.50.

However, we think potential business opportunities arising from co-operation with PetroChina might warrant a re-rating.

[winston]

Not vested. 2 reports in one week ?

From UOBKH:-

Earnings Revision
We raise our earnings forecasts by 4%, 12% and 30% for FY10-12 to factor:
a) revised NG sales volume and connection income and
b) LPG margin improvement.

Valuation/Recommendation
After the earnings revision, the stock is trading at inexpensive 11-16x FY11-12F forward PE multiples. Given its upbeat earnings growth potential, we upgrade the stock from HOLD to BUY and our new DCF-based target price of HK$5.00 represents 15x FY12F PE.

The potential stake holding by PetroChina, which is expected to be announced by the end of this year, could also be a near-term share price catalyst.

[winston]

Not vested. From Dr. Check, The Standard HK:-

China Gas Holdings (0384) sells piped gas, gas connections, LPG, coke and gas appliances in the mainland.

Following a recent share placement, the firm's debt ratio will slip from 124 percent to 42 percent.

In the current financial year, it sold 3.38 billion cubic meters of natural gas, accounting for 7 percent of mainland market share.

Tai Fook raised its target price to HK$5.10, or 18 times 2011 earnings. The stock may have an upside of 18 percent from yesterday's close.

[winston]

"Made in China" ...

Not vested. From UOBKH:-


Downgrade to SELL on top management’s embezzlement of assets

What’s New

After about a month of trading suspension on investigation of a possible offence of embezzlement of assets by members of top management Mr Liu (Managing and Executive Director) and Mr Huang (Executive President), China Gas Holdings (China Gas) finally announced it would resume trading and held an analyst briefing. According to the company:

− The possible offence is probably related to the Hubei projects acquired in 2004, which contributed to about 4.5% of total earnings of the company.

− Mr Liu and Mr Huang will no longer be on the management team.

− Instead, Mr Leung and Mr Pang have been appointed as Joint Managing Directors.

− Trading will resume from 1 February.

[winston]

Tons of Sell recomendations so I will post the odd "buy" one ..

Not vested

DJ MARKET TALK: Goldman Keeps China Gas At Buy, Target HK$5.30

1104 [Dow Jones] STOCK CALL: Goldman Sachs keeps China Gas (0384.HK) at Buy despite the company announcing the removal of the managing director and executive president from their duties because of their detention for alleged embezzlement of assets.

(The company said it hasn't been able to contact the two since their mid-December detention, though no formal charges have yet been made against them, as far as the company knows.)

The house says, based on the company's statement, the number of projects potentially affected is relatively small compared with the total of 147, adding, even assuming a complete write-off of the total consideration for those projects of HK$178 million, it would amount to less than 2% of China Gas' market capitalization.

"We believe the status so far appears more manageable than what some investors may have feared given the long trading suspension," says Goldman.

The house adds, the operating figures for fiscal 3Q11 are generally in-line with house expectations, with little indication of adverse impact on operations.

Goldman keeps the target price at HK$5.30. The stock is down 12.4% at HK$2.97.

Source: Dow Jones Newswire

[winston]

Not vested

DJ MARKET TALK: Citi Cuts China Gas Target To HK$3.00; Keeps Sell

1115 [Dow Jones] STOCK CALL: Citigroup cuts China Gas's (0384.HK) target price to HK$3.00 from HK$4.00 to factor in its concerns over the company's long-term growth prospects, and lowers its earnings outlook for FY12-13.

The house cites several reasons:
1) the abrupt management change may affect an organic ramp-up;
2) new projects may face tougher competition and/or pricing in cities;
3) the LPG business needs time to ramp up;
4) earnings from the LPG segment may continue to fluctuate.

The house's new target is based on 2X 2011 book (lowered from 2.35X, as the market factors in the risks related to further investigation into its management changes and company's lower longer-term ROE of 15%-20%).

"In our view, the company's disclosure may help limit the scope of the impact, and we see a shift in shareholding structure." Keeps the stock at Sell; it's last down 12.1% at HK$2.98.


Source: Dow Jones Newswire

[winston]

not vested

CHINA GAS HOLD (00384.HK) expects huge growth in interim NP on above-estimate operating results

CHINA GAS HOLD (00384.HK) issued positive profit alert, expecting to record huge growth in net profit for the six months ended September 2012 as compared to a year ago due to above-estimate operating performance.

The interim result is expected to be published around 28 November.

Source: AAStocks Financial News

[winston]

not vested

Net profit up 116pc at gas firm

China Gas Holdings (0384) declared an interim dividend of 2.2 HK cents per share after net profit surged 116.3 percent from a year earlier.

The firm recorded an interim net profit of HK$808 million, or basic earnings per share of 18.31 HK cents, in the six-month period ended September 30, 2012.

Chief financial officer Eric Leung Wing-cheong expects the group's dividend payout ratio this year to exceed last year's by 18 percent. The sales volume of piped gas this year is expected to reach 6.8 billion cubic meters.

Leung plans to complete the acquisition of Towngas China Company (1083) in the current financial year.

Earlier this year, Sinopec (0386) and ENN Energy Holdings (2688) planned to take over China Gas by paying HK$3.5 per share.

But 26.1 million shares were then bought by South Korea's E&S at HK$4.56, involving as much as HK$119 million, thereby blocking the takeover.

Overall, interim revenue rose slightly by 8.3 percent to HK$8.57 billion from a year earlier.

Meanwhile, China Gas managing director Liu Minghui has returned to the group after being arrested by mainland police on embezzlement allegations.


http://www.thestandard.com.hk/news_deta ... 21129&fc=7